Regulatory Alerts2025-10-31
Update on the ZARONIA First initiative and first sequencing for Non-Linear and Cross Currency Derivatives
The Financial Sector Conduct Authority (FSCA) encourages inter-dealer participants to adopt ZARONIA-based conventions for Non-Linear and Cross Currency Derivatives, replacing JIBAR as the primary benchmark. This "ZARONIA First" initiative, driven by the South African Reserve Bank and the Market Practitioners Group, aims to align South Africa's financial markets with international standards by transitioning to a benchmark grounded in actual overnight transactions. From 31 October 2025, inter-dealer brokers are encouraged to use ZARONIA for primary quoting of these derivatives, with the FSCA emphasizing active engagement from all market participants to build sufficient liquidity.
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